Electric car discount: the top 10 EVs that qualify in Australia

Electric car discount: the top 10 EVs that qualify in Australia

Good for the environment and kind on the wallet thanks to lower running costs — there’s no surprise that sales of electric vehicles (EVs) are on the rise in Australia. To make these cars even more appealing, Australian states and territories have put a number of schemes and incentives in place so that you can purchase your brand new EV at a discounted price. 

Even better news, the Australian Government has now removed fringe benefits tax (FBT) on eligible electric cars. With the recently introduced law, electric vehicles with an RRP under $84,916 are exempt from the 47% fringe benefits tax if provided through a novated lease. This could save you $4,700 per year on average using a $50,000 model as an example. 

In times of inflation and rising energy prices, this sounds quite enticing, doesn’t it? But, navigating the ins and outs of the different schemes can be overwhelming. 

Each state has different incentives and price caps, which means that EVs over a certain price don’t qualify for all discounts. Moreover, several incentives not only apply to the list price of the car but also include the cost of optional extras and dealership delivery fees. 

Here’s the breakdown of the discount schemes price caps:

  • Queensland: $58,000

  • Victoria: $68,740

  • New South Wales: $68,750

  • South Australia: $68,750

  • Western Australia: $70,000

  • FBT exemption: $84,916

When you start doing your research, you quickly realise that not all EVs qualify. To save you the time and effort, we’ve put together a list of the best electric vehicles available in Australia in 2022 that fall under the price caps of each state and federal government.

Here is the list:

  1. Hyundai Kona 
  2. BYD Atto 3
  3. MG ZS
  4. Mini EV
  5. Tesla Model 3
  6. Polestar 2
  7. KIA Niro
  8. Tesla Model Y
  9. Hyundai Ioniq 5
  10. KIA EV6

Check the tables below to see what incentives are available for the vehicle you’re interested in.

1. Hyundai Kona

Hyundai is well known for being playful, confident, sporty and practical — the Kona EV delivers on all of these attributes. 

Price: Starting at $29,490.

Kona
Active
Elite
N Line
Highlander
N Line Premium

Price 1

$29,490

$32,173

$35,675

$41,000

$42,267

$47,316

FBT exempt through a Novated Lease

✔️

✔️

✔️

✔️

✔️

✔️

QLD Incentive

✔️

✔️

✔️

✔️

✔️

✔️

VIC Incentive

✔️

✔️

✔️

✔️

✔️

✔️

NSW Incentive

✔️

✔️

✔️

✔️

✔️

✔️

WA Incentive

✔️

✔️

✔️

✔️

✔️

✔️

SA Incentive

✔️

✔️

✔️

✔️

✔️

✔️

Discount

Even if you want to add a premium paint choice and pre-paid servicing, every Kona model will qualify for a discount across Australia.

Features / performance

  • Wireless smartphone charging pad

  • 10.25” Multimedia touch screen display

  • Hyundai Smart Sense safety features

  • Heads-up display

  • LED day and night lights

  • Five-year/unlimited-kilometre warranty 

  • 12 Months roadside assistance

Range

The driving range of the Kona is approximately 305 km, which is on the lower end of the scale when compared to equivalent EV models.

What you might believe to be a compact SUV is a surprisingly spacious car. The Kona interior has been designed carefully to fit everything that you and your busy life can throw at it. There’s plenty of room for passengers and all of your bags and things, making it great for road trips and holidays 🧳🏖️

Highlight from Flare’s EV expert, Tom Tweet

2. BYD Atto 3

The BYD Atto 3 is desirable in design, powerful in performance and souped up with safety features. It boasts 7 SRS airbags and, with 1,330 litres of boot space and power-adjusted seats, makes travelling comfortable for the entire family. 

Price: Starting at $44,381.

Standard
Extended

Price 2

$44,381

$47,381

FBT exempt through a Novated Lease

✔️

✔️

QLD Incentive

✔️

✔️

VIC Incentive

✔️

✔️

NSW Incentive

✔️

✔️

WA Incentive

✔️

✔️

SA Incentive

✔️

✔️

Discount

Second most affordable on our list, the BYD Atto 3 sails through all of the state and territory price caps and qualifies for FBT exemption. You can even upgrade to the paint of your choice for $700.

Features / performance

  • 220v Emergency charging cable included
  • 8 year/160,000 km battery warranty
  • 6 year/150,000 km vehicle warranty
  • Automatic emergency braking system 
  • Electric panoramic sunroof 
  • 8 Speakers Dirac Sound System
  • 12.8” Intelligent touch screen display 

Range

The BYD Atto 3 has a driving range of up to 480 km, which is impressive.

The BYD Atto 3 is a great, low-budget option for people wanting to save the environment and their wallet! The panoramic sunroof will put the wind in your sails.

Highlight from Flare’s EV expert, Tom

3. MG ZS

The MG ZS falls within Australia’s top 3 cheapest EVs. But don’t be fooled, the lower price doesn’t mean you’ll miss out on design and features. This midsize SUV is comfortable, smart and has an appealing new look. 

Price: Starting at $45,690.

EV Excite
EV Essence

Price 3

$45,690

$46,690

FBT exempt through a Novated Lease

✔️

✔️

QLD Incentive

✔️

✔️

VIC Incentive

✔️

✔️

NSW Incentive

✔️

✔️

WA Incentive

✔️

✔️

SA Incentive

✔️

✔️

Discount
Drive away with the EV Excite for $45,690 or the EV Essence for $49,690 — you’ll qualify for a discount in all states and territories.

Features / performance

  • Three driving modes and three regenerative braking modes
  • MG Pilot driver safety technology
  • Push button start
  • LED daytime running lights
  • 360 View camera 

Range

The MG ZS enjoys 320 km of driving range (WLTP), a middle-of-the-road driving range when compared to its main competitors. 

If tech is your thing, then you’ll fall in love with the ZS’s newly designed 10.1" floating touch screen. It boasts a 170-degree viewing angle and reduced reflective rate, making it easy to read even in bright sunshine. ☀️

Highlight from Flare’s EV expert, Tom

4. Mini EV

The Mini EV still embodies the iconic design that we all know and love, but it stands out from the crowd in the EV sphere thanks to its small size. If you’ve got an urban lifestyle, the Mini EV is perfect for zipping around the city.

Price: Starting at $61,499.

Classic
Mini Yours
Resolute Edition

Price 3

$61,499

$69,601

$69,968

FBT exempt through a Novated Lease

✔️

✔️

✔️

QLD Incentive

VIC Incentive

✔️

NSW Incentive

✔️

WA Incentive

✔️

✔️

✔️

SA Incentive

✔️

Discount

The Mini EV comes in three different models, which enables you to tailor your EV to your preferences. Choose from paint, wheel types, leather interiors and more. The Mini Classic model is the most accessible option coming in under the price caps across most states, with the Mini Yours and Resolute Edition only being available at a discounted rate in WA or under the FBT novated lease exemption.

Features / performance

  • Three-year unlimited warranty
  • Battery warranty for eight years/160,000km
  • Digital instrument cluster — a 5.5” screen positioned conveniently behind the steering wheel

Range

The Mini EV has a slightly shorter range of 233 km (WLTP) when compared to its EV competitors. It charges to 80% in 36 minutes. The battery is positioned under the vehicle’s floor making the centre of gravity even lower than a petrol-powered MINI. This means enhanced stability at every bend.

Recharge whilst you drive. When you take your foot off the accelerator, the energy from the car decelerating is recouped to recharge the battery — genius! 💡

Highlight from Flare’s EV expert, Tom

5. Tesla Model 3

We’ve all heard of Tesla, but the Tesla Model 3 has been named Australia’s most popular EV. It’s fully electric, sleek, tech-forward and puts safety first. It comes in three variations: the entry-level Rear-Wheel Drive, mid-spec Long Range and Top-Spec Performance. 

Price: Starting at $65,500.

Rear Wheel Drive
Long Range

Price 3

$65,500

$80,000

FBT exempt through a Novated Lease

✔️

✔️

QLD Incentive

VIC Incentive

✔️

NSW Incentive

✔️

WA Incentive

✔️

SA Incentive

✔️

Discount

The Tesla Model 3 Rear Wheel Drive qualifies for all state subsidy/rebate schemes bar Queensland. In some states, you can even add in optional premium paint for $1,500. Don’t forget to add on the dealer delivery fee starting at $1,375. 

Want to get your hands on the Model 3 Long Range? Then the FBT exemption will be your friend.

Features / performance

  • Battery cover for eight years/240,000 km
  • 0-100 km/h in 3.3 seconds
  • 15-inch touch screen display
  • Four year/80,000 km warranty
  • Dual motor all-wheel-drive and performance brakes for control in all weather conditions available as optional

Range

The Tesla 3 sports 547 km of driving range (WLTP) and you can recharge up to 299 km in just 15 minutes at Tesla’s Supercharger locations.

If safety is key for you, this is the EV to consider. In a roof-crush test, Model 3 resisted four times its own mass, even with an impressive all-glass roof. That’s as much weight as two fully grown African elephants 🐘🐘

Highlight from Flare’s EV expert, Tom

6. Polestar 2

A new EV on the market, the Polestar 2 launched in Australia earlier this year. Its minimalistic design, including stylish, frameless mirrors and a glorious panoramic roof, paired with its powerful drive, make it a desirable EV. 

Price: Starting from $67,440.47.

Standard Range Single Motor
Long Range Single Motor
Long Range Dual Motor

Price 6

$67,440.47

$71,940.47

$76,940.6

FBT exempt through a Novated Lease

✔️

✔️

✔️

QLD Incentive

VIC Incentive

✔️

NSW Incentive

✔️

WA Incentive

✔️

SA Incentive

✔️

Discount

If you go for the standard range model, you can still qualify for a discount in some states if you add optional extras, such as a premium paint pack ($1,500) and 20-inch five-spoke alloy wheels ($1,400). With the FBT novated lease exemption, you can also upgrade to a panoramic glass roof, 360-degree camera and forged alloy wheels.

Features / performance

  • Five year warranty
  • Five year complimentary roadside assistance and servicing 
  • 0-60 km/h in seven seconds 
  • Impressive safety features that include lane keeping aid and post impact braking 
  • Built-in Android operating system 

Range

The Polestar 2 enjoys a range of 477 km (WLTP) and powers up to 228bhp. 

Did you know? The air quality system included in the Polestar 2 Plus pack detects pollutants and pollen and adjusts the cabin filter to keep them out! 🍃

Highlight from Flare’s EV expert, Tom

7. Kia Niro

Modern in design, with technology and safety at its forefront, the Kia Niro is new to the market. It has all the space you’d hope for in an SUV but doesn’t compromise on style and luxury. 

Price: Starting at $70,780.75.

S
GT Line

Price 7

$70,780.75

$77,920.75

FBT exempt through a Novated Lease

✔️

✔️

QLD Incentive

VIC Incentive

NSW Incentive

WA Incentive

SA Incentive

Discount

The Kia Niro S and GT Line are eligible for the FBT novated lease exemption only. You can choose your favourite car colour for an extra $520. 

Features / performance

  • Dual 10.25” display including Bluetooth and Apple CarPlay
  • Heated and ventilated front seats
  • Remote Smart Parking Assist
  • 150kW of power and 55 Nm torque

Range

The Kia Niro has a range of 460 km (WLTP).

The Niro comes with Kia Connect — Kia’s digital offering with a wide range of features and services, such as remote engine start, door lock control, and EV charging station finders.

Highlight from Flare’s EV expert, Tom

8. Tesla Model Y

The Tesla Model Y not only looks sexy, it’s also practical. With ample space for five adults and 261 litres of storage it also exhibits top of the range safety features. 

Price: Starting at $72,300.

Tesla Model Y

Price 7

$72,300

FBT exempt through a Novated Lease

✔️

QLD Incentive

VIC Incentive

NSW Incentive

WA Incentive

SA Incentive

Discount

The more expensive EV Tesla Model Y doesn’t qualify for any local government schemes, but can be purchased under the FBT novated lease exemption. You’ll even have some spare change to upgrade to premium paint, black and white interior, 20” induction wheels or enhanced autopilot. 

Features / performance 

  • Two ultra-responsive, independent electric motors that digitally control torque to the front and rear wheels
  • Zero to 100 km/hr in 3.7 seconds
  • 15” Touchscreen display 
  • Expansive glass roof with UV protection
  • 5-star ANCAP safety rating

Range

The Tesla Model Y boasts an impressive 514 km range (WLTP), perfect for longer journeys. Recharge up to 261 km in just 15 minutes at Tesla Supercharger stations. 

The Tesla Model Y’s interior is really designed with the driver in mind. The driver’s seat is elevated and the dashboard has been lowered so that the driver has a full and safe view of the road in front.

Highlight from Flare’s EV expert, Tom

9. Hyundai Ioniq 5 

Hyundai has recently launched in Australia the 2021 ‘Car of the Year’ winner, the all-electric Ioniq 5. With its distinct and futuristic design, sustainable materials used throughout and many gizmos and gadgets, it’s already making waves in the country.

Price: Starting at $74,529.

Hyundai Ioniq 5

Price 7

$74,529

FBT exempt through a Novated Lease

✔️

QLD Incentive

VIC Incentive

NSW Incentive

WA Incentive

SA Incentive

Discount

Priced at over $70,000, this EV is not eligible for state and territory discount, but does qualify for FBT exemption through novated leasing.

Features / performance

  • 77.4kWh battery
  • Parametric LED headlights using cubic pixels to light up the roads
  • Memory seating with relaxation mode options 
  • Hyundai Smartsense safety features 

Range

454 km-507 km (WLTP) of range and 10% to 80% charge time in only 18 minutes.

If you’re into design, you’ll be impressed by the Ioniq 5’s aero-optimised wheels, which echo the sleek design of the car profile. 🛞

Highlight from Flare’s EV expert, Tom

10. Kia EV6

Here we have a multi award-winner! The Kia EV6 has been named ‘Wheels Car of the Year 2022’ and 2022 ‘Carsales Car of The Year’. This EV combines all of Kia’s advanced automotive expertise into a fully electric and stylish SUV. Plus, the EV6 is the first fully electric vehicle to go through Kia Australia’s Local Ride and Handling program, meaning it’s truly made to drive on Aussie roads. 

Price: Starting at $78,435.25.

Kia EV6 Air

Price 7

$78,435.25

FBT exempt through a Novated Lease

✔️

QLD Incentive

VIC Incentive

NSW Incentive

WA Incentive

SA Incentive

Discount 

With prices starting at the higher end of the EV scale, the Kia EV6 Air can be purchased under the FBT scheme only. You’ll also have some leftover budget to pick the colour of your car for an extra $520. 

Features / performance

  • Aerodynamic design
  • Recycled materials used in the interior
  • Augmented reality heads up display
  • Heated steering wheel
  • Remote Smart Parking Assist 

Range

The Kia EV6 has a range of 528 km (WLTP) and a 77.4kWh battery. 

The Kia EV6 comes equipped with a portable power supply and two-way charging, so it can charge up your electric devices. 🔌

Highlight from Flare’s EV expert, Tom

There you have it!

As promised, we’ve helped you make sense of the schemes and incentives available in Australia and shown you some electric vehicles eligible for a discount.

The good news is that the $84,916 federal government FBT exemption cap is higher than all states’ price ceilings. This not only expands the pool of EVs eligible for a discount, but gives you yet another benefit when choosing novated leasing for your EV.

Do you still have questions? Or maybe you’d like help sourcing your new car, negotiating the price and organising a test drive? You might also love to have the support of a car expert who negotiates on your behalf and secures the best EV deals for you. And while you’re at it, why not enjoy significant tax savings and no GST on your car purchase, electricity mileage, servicing and maintenance?

You’ll get all of this and more when you sign up to an EV Novated Leasing with Flare. 

Want to find out more? Just ask a Flare expert

Source: Hyundai website, as of November 2022.
Source: BYD website, as of November 2022.
Source: MG website, as of November 2022.
Source: Mini website, as of November 2022.
Source: Tesla website, as of November 2022. Pricing set to NSW.
Source: Polestar AU website as of November 2022. NSW pricing applied.
Source: Kia website, as of November 2022. Prices applied to NSW
Source: Tesla website, as of November 2022.
Source: Hyundai website, as of November 2022.
Source: Kia website, as of November 2022.

Never miss an article

Subscribe to news and trends to help empower HR and business leaders do their jobs better each week.